Menu
Nvidia nears deal to acquire Mellanox: source

Nvidia nears deal to acquire Mellanox: source

Deal would be Nvidia’s biggest-ever acquisition

Chipmaker Nvidia is nearing a deal to acquire peer Mellanox Technologies for more than US$7 billion in cash, a person familiar with the matter has revealed.

The deal would be Nvidia’s biggest-ever acquisition and boost its business of making chips for data centres, allowing it to reduce its reliance on the video game industry, for which it is best known as a major technology vendor.

Nvidia has outbid Intel in the auction for Mellanox and could announce a deal as early as Monday, the person said.

The source asked not to be identified because the negotiations are confidential. Intel and Mellanox did not immediately respond to requests for comment. Nvidia declined to comment.

Financial news website Calcalist had reported earlier on Sunday that Nvidia had outbid Intel for Mellanox.

Mellanox's chips power high-speed networks connecting servers. The company, which is based in Israel and the United States, had a market capitalization at the end of trading on Friday of about $5.9 billion.

Data centre revenue accounts for nearly a third of Nvidia's sales. Nvidia, based in Santa Clara, California has grown at a rapid pace in the past few years, under CEO Jensen Huang, but a slowdown in China and a fading cyrpto-currency craze have started to weigh on its sales in recent quarters.

In January, Nvidia, which has market capitalisation of US$91 billion, cut its fourth-quarter revenue estimate by half a billion dollars because of weak demand for its gaming chips in China and lower-than-expected data centre sales.

Nvidia’s acquisition of Mellanox would also represent a win for activist hedge fund Starboard Value LP, which is a shareholder of the company and reached a deal with it last year over the composition of its board.

(Reporting by Liana B. Baker; Additional reporting by Scott DiSavino; Editing by Daniel Wallis, Andrea Ricci and Lisa Shumaker)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftintelnvidiaMellanox Technologies

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
Show Comments